EU-aided INSPIRED project launched to support small firms

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FE Report
The European Union (EU) and the Ministry of Industries (MoI) launched Tuesday INSPIRED (Integrated Support to Poverty Reduction and Inequality through Enterprise Development) project to support small and medium enterprises (SMEs).
Industries minister Dilip Barua, and Ambassador William Hanna, Head of the Delegation of the European Union to Bangladesh, attended the launching ceremony in the city. K. H. Masud Siddique, Secretary of Ministry of Industries, chaired the occasion.
The six-year project financed by the EU with an amount of 19 million euros will improve the competitiveness of SMEs on local and international markets. It will update and operationalise the national strategy for SME development, streamline SME regulations, improve SME access to affordable finance, and enhance support services provided by Business Intermediary Organisations (BIOs).
The project will be managed by the Ministry of Industries, in partnership with Bangladesh Bank. ABM Khorshed Alam, Additional Secretary Ministry of Industries, will work as project Director.
The Bangladesh Institute of Bank Management and Bangladesh Bank Training Academy will provide training to bankers on improved financial products and services for SMEs. Business Intermediary Organisations (BIOs), such as trade associations or chambers of commerce, will benefit from a grant scheme of EUR 6.5 million helping them to improve their services for their members and to develop enterprise clusters in eight sectors, namely agro-processing, natural fibres, electronics, plastics, light engineering, furniture, textiles and leather.
Mr Barua said that "Through this project, the capacity of Bangladesh Bank as regulator and other commercial banks will be strengthened, paving the way both for bankers and entrepreneurs in financing SMEs."
Mr Hanna highlighted the role SMEs can play in increasing the diversity and competitiveness of Bangladeshi products in global markets.
He stressed that much of the 2011 record-high Bangladesh exports to the EU, which reached EUR 8.5 billion, were exports by SMEs.
Mr Siddique, Secretary, Ministry of Industries, said that the successful implementation of this project will enable entrepreneurs to develop further competitive and sustainable businesses.
Capacity building of SME cell, SME Foundation and BIOs will create new platforms to explore diversified business opportunities, he added.
The EU has contributed 80 million euros in the period of 2007 - 2013, for economic cooperation and trade-related assistance in Bangladesh. EU Trade-related programmes and projects in Bangladesh concentrate on four major areas: Trade Policy, Quality Management, Private Sector Development and Skills Development.